Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-04-28
THE RAILROAD INQUIRY.
Statement of C. p Huntington Before tn,
RaiIrnad Investigation, Cnrnn,issin,,

Statement of C. z. Huntington Before the
Railroad Investigating Commission.
NEW York, April 27th-The Pacific
Railroad Congressional Investigating Com
mission met to-day at its Office in Wall
street. Ex-Governor Robert E. Pattison, OF
Pennsylvania, swore c.. p. Huntington,
who was the first witness. The examina-
ton was conducted by L. Ellery Anderson.
The witness stated that he had been con-
nected with the road since its organization,
in 1861. His particular business was to at
tend to the financial matters. The main
office was in San Francisco, where the Di-
rectors meetings took place. Himself and
another Vice-President live in New York.
but the company never had kept a set of
books here.
They commenced building road with
small contractors, and as they did not get
along very well with the construction, a
contract was let to Mr.. Crocker. This was
within about one year of the passage of the
Act of 1862. The money for the construc-
ton was provided for by contribution
From the time the road was commenced to
the time of its completion the prices of
material went up from 200 TO 800 per cent
Iron was $3.50 per ton, locomotives cost
IS 600, and before they got through as much
as So 600 was paid. They paid in gold for
all their supplies, and that was how they
came to a stand-still Tor funds to continue
its construction. Garrison and d. o. Mills
were asked TO join in the enterprise but
they could not see their way clear to a safe
investment this time Senator Stanford
and Mr.. Crocker were owners of most of
the stock of the Contract and Finance
Company, which was organized to continue
the building of the road
Witness then described the difficulties
under which they labored before the diff
ferent branches which now constitute the
main line were put through. In the seven
ties they purchased steamers to run in con-
nection with the road from San Francisco
and other points on the coast They were
part of the purchase of the California Pa
cific, which they bought. Then the steamers
were sold to the Central Pacific, to be used
as ferry-boats He did not know how the
transfer came about. the price paid, nor
what effect it bad on the market price of
the stock. The road he was interested in
the Central Pacific, he thought was operat-
ing those steamers to-day. There was not
much profit in them. The California and
Oregon road was consolidated with the
Central Pacific. 1t runs from Portland, Or,
to San Francisco, ard was an Oregon COM
pany. The construction was commenced
in 1868, and the land grant was made in
1866. The consolidation was effected about
1870. After the consolidation the Pacific
improvement Company went on with the
construction of the California and Oregon
| to Redding.
Resuming, he stated that much of the
| stock of the company was sold to the Con-
tract and Finance Company before the Act
of 1862, and again that it was his impress
sion that there was not any stock issued
| The law required that 10 per cent should
be put up before they could organize. Con-
| tracts were paid partly in stock and partly
in cash. The cash was produced by indi-
viduals. They were not paid by money
subscribed for the stock
Witness denied that money was ever
given to Congressman to Influence them in
favor Of the company, but he admitted that
the compaDy's counsel had used more
money than usual while Congress was
| sitting.
Witness was questioned as 10 the lease of
| the Central Pacific to the Southern Pacific
and he admitted that ne was interested in
both com panies and had recommended the
consolidation.
/ Tie proceedings then adjourned.